I have been trying to understand the big picture in the crypto world for a long time. Just when I thought I had reached a certain level of maturity on the subject, I came across https://dappradar.com/rankings/category/high-risk. I was surprised to find 1449 applications in this dapp category, which I was not aware of before. And new ones are coming out every day. Looking at the data reported on Dappradar, it is possible to say that there is a high-risk dapp explosion in the crypto world right now.
High-risk applications work with the Ponzi scheme mechanism. These applications mainly operate on networks such as BSC, Tron, Polygon and use the crypto of the relevant network as currency. You deposit a principal to earn interest through your non-custodial wallet. Despite not being able to withdraw the principal, you earn daily interest ranging from 2 percent to 3 percent. You can withdraw the interest you deserve at any time.
I don't know if it is right to consider depositing money to high-risk dapps as an investment. As long as there are people who join after you, you can double your money in 2 months. Or you may lose your principal after earning interest for some time.
The difference between these systems from traditional Ponzi schemes is that they do not hide that they are Ponzi schemes. Since the transactions take place on the blockchain, you can transparently follow the system. The amount of new investment added to the pool can cause the interest rate to increase or decrease, but I have not observed such a situation yet.
Those who set up and run the system usually receive a share of between 5% and 10% from the pool. A share between 8% and 15% is allocated to marketing. Of course, these rates may vary depending on the application.
After giving information about the category in general, I would like to give information about the two applications I invested in.
https://bnbminer.finance/
The application has been active since March 24, 2021, and gives 3 percent daily interest. Therefore, those who invest money in the application in the early period have achieved a solid return. Operating on the BSC network, the application is the leader of this category with 3.55k daily users. There is still 7000 BNB in its pool.
Depositing and withdrawing funds from the app is quite simple. After connecting your Metamask wallet to the site, you press the Hire Miners button on the site to deposit. As I mentioned above, you cannot get back the principal you deposited. If the system continues for another 34 days with 3% interest, you get your money out and then you go to profit.
https://troncarry.com/
The app has been active for 2 weeks and has 1.46k daily users. Operating on the Tron network, the application promises a daily return of 2 percent. If you do not receive interest payments for five days, this rate increases to 2.5% gradually. In this application, you can not withdraw your principal, and you can withdraw 60% of the interest you earn. The remaining 40% is added to your principal. This means that there is a daily interest load of 1.5% on the pool. It seems sustainable for a longer time compared to the other model.
Conclusion
High-risk apps reminded me of the chair-grabbing game we played during a training session. There were fewer chairs than people in the game, and some people remained stood up when the command was given to sit down. Since I consider the concept as a game, I invested an amount that would not upset me when I lose.
I went to Dappradar.com to check the end user count of Splinterlands. Then, when I encountered the High-Risk category, for the first time in my life, I invested in a Ponzi scheme.
Such a large number of applications means more experiments in this area. These practices may evolve into a sustainable structure over time, or they may leave thousands of disappointed people behind. In any case, I find it useful to have an open mind.
By the way, since there is a high-risk application in all major networks, I think it can be tried in Hive as well. If anyone builds one, a customer is ready to use 😊
Thank you for reading.
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